Photo: Messenger
Garment exports of the country have gained momentum after a long period of economic instability. In a significant turn of events, apparel exports in the single month of February rose by 14 percent to $4.49 billion.
During July-February 2024, apparel exports grew by 4.77 percent compared to only 1.72 percent in the first half of the previous fiscal year.
The data from the Export Promotion Bureau (EPB) shows that the garment export figure of $32.85 billion is an expected amount for manufacturers. Last January, the country witnessed a big export figure amounting to $4.97 billion.
“If we can maintain the domestic supply chain, increase investment in new products and markets, we will be able to achieve the desired growth,” said Mohiuddin Rubel, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), in a statement.
He said it is difficult to predict the trajectory for 2024, given the uncertainties in the international economic and geopolitical landscape.
Differing from the EPB data, BGMEA Vice President Shahidullah Azim told The Daily Messenger, “I think the EPB data doesn't match reality. The sector is suffering from a lack of work orders as the EU and world market are struggling with the economic slowdown. So, how can the exports make such a big figure.”
Unfortunately, since February 2022, when the war between Russia and Ukraine began, exports were affected. Exports have also fallen below $4 billion in some months of the year.
EPB data shows that the exports in July 2023 amounted to $3.95 billion, while in August it was $4.04 billion, September $3.61 billion, October $3.16 billion, November $4.05 billion, and December the exports fetched $4.56 billion. Besides, in January this year, the country fetched $4.97 billion, and in February, the exports earned $4.49 billion from the global market.
The trade leaders are very depressed as the target has been missed by 5.22 percent in the mentioned period. The target set for the time was $34.66 billion.
The exporters think that the industry will bounce back to strong growth from the next year.
Meanwhile, China is going to stop producing cheap clothes, and the country has increased its investment in Vietnam in the high-end sector. Vietnam will become the largest competitor of Bangladesh within a few years.
The EPB reports a decline in garment exports to traditional markets. In the July-December 2023 fiscal year, garment exports to the USA decreased by 5.76 percent to $3.27 billion, the EU by 0.18 percent to $9.05 billion, the UK by 14.61 percent to $2.25 billion, and Canada by 2.71 percent to $606 million. However, non-traditional markets witnessed a growth, with Bangladesh's apparel exports increasing by 14.12 percent to $3.64 billion.
Bangladesh predominantly exports cotton-based products such as T-shirts, sweaters, blouses, underwear, and denim. As the world's second-largest garment exporter after China, Bangladesh holds the title of the largest denim exporter to the USA and a major cotton exporter to the EU.
Messenger/Disha
